Open Enrollment: How to Choose the Right Plan for You and Your Family?
Benefits open enrollment is your once-a-year opportunity to review the company benefits and select the best fit for you and your family for the coming year. A lot can happen in a year, and knowing you’ve done your best to prepare for the unexpected can give you peace of mind.
Here are some general considerations when choosing benefits for the upcoming year:
- Are your current carriers, plans and healthcare account(s) meeting your needs?
- Do you anticipate any changes next year to your or your family’s health and insurance needs?
- Do you need to change which family members are covered?
- Do you have a dependent who is turning 26 next year? If so, their coverage under your medical plan will end at the close of their birthday month.
- Are your beneficiary designations up-to-date?
Here are some medical plan considerations:
- Do you prefer paying lower premiums each paycheck, knowing you pay more out of pocket when you need non-preventive care services?
- Do you prefer paying higher premiums, so you’ll have more predictable copay, or lower out-of-pocket costs when you need medical care?
- Do you take advantage of preventive care services but not much else each year?
- Are you planning an upcoming surgery, like a knee replacement?
Different types of medical plans have their own distinct features you should be aware of:
- Traditional EPO/PPO/HMO Plans – These plans provide a variety of deductibles, co-pay arrangements, and network discounts and/or requirements. It is important to research and understand the options and implications of the various plans available. These will generally have higher costs per paycheck than other plans but may require less effort from to receive benefits. Preventive care is generally fully covered by the insurer, with no out-of-pocket cost to the member. Per-paycheck costs can vary greatly depending on the deductible, co-insurance, network, and other coverage limits and terms that are specific to each plan.
- High-Deductible Health Plan (HDHP) – These plans generally cost less but have a higher deductible than traditional EPO, PPO or HMO plans. They require you to pay the entire cost of all healthcare (other than preventive care) until the deductible is met. Insurance will then kick inand pay a portion of your costs. Preventive care is generally fully covered, with no out-of-pocket cost to the member. With an HDHP plan, you can establish and fund a health savings account (HSA) to pay medical expenses with tax-advantaged money.
- Supplemental Health Plans – These plans pay a fixed dollar amount to you (or your provider) for covered services. For example, you may receive a $50 reimbursement for a standard office visit or $100 for an emergency room visit. You are responsible for the entire cost of healthcare service. Preventive care is not covered, but members may receive reimbursement depending on the service and plan. These are the lowest cost option, but are not major medical plans.
What’s the value in supplemental and lifestyle plans?
These plans provide additional value and can be used to round out your specific needs and circumstances. Employers generally don’t pay any portion of the premium but plans available through an employer’s benefits program generally deliver more favorable terms and lower costs if you were to source these products on your own since insurers provide group rates.
- Accident, critical illness and hospital indemnity insurance
- Pet insurance
- Legal plan
Don’t neglect your retirement.
It’s important to fund your retirement as soon as possible to allow your retirement savings to grow over time. A great way to do this is to take advantage of the retirement plans offered by Allied Universal. You can set aside an amount of money from each paycheck based on your circumstances and goals. Be sure to learn more, including about the tax advantages of saving in the Allied Universal plans. For the Allied Universal 401(k) Plan contact Empower at 844-465-4455 or log in at empowermyretirement.com. For the Supplemental Income Plan, login at www.MyDeferral.com.
Disability and life insurance offer additional security in the event of an unexpected event.
Short-term and long-term disability insurance coverage provide a portion of your pay if you become unable to work due to a covered injury. It’s a valuable mechanism to deliver peace of mind to your and your family’s finances.
Life insurance, on the other hand, provides your loved ones with valuable financial support in the event of your death. The policy amount is paid to the beneficiary(ies) designated by you (often a spouse, partner or children).